U.S. regional manufacturing activity decreases in March

Source: Xinhua | 2020-03-20

U.S. Federal Reserve Bank of Philadelphia on Thursday reported that regional manufacturing activity decreased in March due to the impact of COVID-19.

According to the March Manufacturing Business Outlook Survey, the current indicators for general activity, new orders, and shipments fell precipitously this month, coinciding with developments related to the pandemic.

This month, the diffusion index for current activity declined markedly from a three-year high reading to its lowest reading since July 2012.

The percentage of firms reporting decreased in March exceeded the percentage reporting increased. The index for new orders also turned negative, falling from 33.6 to -15.5.

The survey's future indexes fell this month but remained at a relatively high reading. Nearly 51 percent of the firms expect increases in activity over the next six months, while 16 percent expect declines.

The Manufacturing Business Outlook Survey is a monthly survey of manufacturers in the Third Federal Reserve District covering eastern Pennsylvania, southern New Jersey and Delaware.

The Federal Reserve Bank of Philadelphia is one of the 12 regional Federal Reserve Banks that, together with the Board of Governors based in Washington, D.C., make up the Federal Reserve System.